Cummins Inc. (NYSE:CMI) is a global leader in the design, manufacture, and distribution of engines, filtration, and power generation products. The company operates through various segments, including Engine, Power Systems, Distribution, and Accelera. Cummins competes with other major players in the industry, such as Caterpillar and General Electric, in providing innovative solutions for power needs worldwide.

On May 5, 2025, Cummins reported earnings per share EPS of $4.95, slightly surpassing the estimated $4.91. This performance reflects the company's ability to manage costs and optimize operations despite revenue coming in at $8.17 billion, surpassing the Zacks Consensus Estimate of $8.07 billion.

This strong performance was driven by higher-than-expected revenues from the Power Systems, Distribution, and Accelera segments. Total revenues reached $8.17 billion, surpassing the Zacks Consensus Estimate of $8.07 billion, although it marked a decline from the $8.4 billion reported in the previous year.

Despite the overall positive results, the Engine segment experienced a 5% year-over-year sales decline to $2.8 billion, missing the estimate of $2.87 billion. Sales in North America and international markets decreased by 4% and 11% year-over-year, respectively, due to weaker on-highway demand in the United States and Latin America. This highlights the challenges faced by Cummins in certain market segments.

Cummins' financial metrics provide a comprehensive view of its market valuation and financial health. With a P/E ratio of approximately 15.12, the market values its earnings moderately. The company's price-to-sales ratio of about 1.24 and enterprise value to sales ratio of roughly 1.41 reflect its revenue valuation. Additionally, Cummins maintains a current ratio of approximately 1.34, indicating its ability to cover short-term liabilities with short-term assets.